8. Strategic Plan Outline

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Strategic planning templates & examples;
Business, Finance, planning, Vision, Mission, Plan, objectives, strategy, swot, pest, Business plan, Strategic planning, bcg matrix

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8. Strategic Plan Outline

  1. 1. Strategic Plan Outline I. Executive Summary A one- to three-page synopsis of the plan providing highlights of the current situation, objectives, strategies, principal actions programs, and financial expectations. II. Company Mission The mission of a company is the unique purpose that sets it apart from other companies of its type and identifies the scope of its operations. The mission describes the company’s product, market, and technological areas of emphasis in a way that reflects the values and priorities of the strategic decision makers. A. Define the core business 1. Basic product or service 2. Primary market 3. Principal technology for production or delivery III. Company Profile The company profile depicts the quantity and quality of the company’s financial, human, and physical resources. It also assesses the strengths and weaknesses of the company’s management and organizational structure. Finally, it contrasts the company’s past successes and traditional concerns with the company’s current capabilities in an attempt to identify the company’s future capabilities. A. SWOT Analysis Template: Company Situation Analysis Form: SWOT Analysis Checklist 1. Internal Strengths and Weaknesses a. Marketing b. Financial and Accounting (1) Ratio analysis Templates: Ratios Comparative Ratios (2) Sources and uses of funds Templates: Calculating the Cash Budget Ratios Cash Flows Working Paper: Direct Method Cash Flows Working Paper: Indirect Method c. Production, Operations, Technical d. Human Resources e. Quality Management f. Information Systems g. Organization and General Management 2. External Opportunities a. Serve additional customer groups or expand into new markets or segments b. Expand product line c. Transfer skills to new products or businesses d. Integration (1) Forward Page 1 Used by permission of the McGraw-Hill Companies. Copyright The McGraw-Hill Companies. All rights reserved.
  2. 2. (2) Backward e. Foreign markets f. Emerging new technologies 3. External Threats a. Low barriers to entry b. Availability of substitute products or services c. Slower market growth d. Costly regulatory requirements e. Growing bargaining power of customers or supplies f. Changing buyer needs and tastes B. Strategic Cost and Price Analysis 1. Value chain approach: Primary activities Template: Value chain activities and cost a. Inbound logistics b. Operations c. Outbound logistics d. Sales and Marketing e. Service 2. Value chain approach: Support activities a. Procurement b. Technology c. Human resources d. Infrastructure of the firm C. Current Competitive Position Form: Signs of Strengths and Weaknesses in a Company’s Competitive Position Templates: Company Situation Analysis Competitive Strength Assessment 1. Comparison with past performance 2. Stage of industry evolution 3. Comparison with competition Form: Categorizing the Objectives and Strategies of Competitors 4. Comparison with success factors in the industry Form: Types of Key Success Factors IV. External Environment A firm’s external environment consists of all the conditions and forces that affect its strategic options but are typically beyond its control. A. Remote environment 1. Economic 2. Social/Cultural 3. Political/Regulatory 4. Technological 5. Ecological B. Industry analysis 1. Industry attractiveness analysis Template: Industry Attractiveness Factors Page 2 Used by permission of the McGraw-Hill Companies. Copyright The McGraw-Hill Companies. All rights reserved.
  3. 3. a. Market factors: (1) Size (2) Growth (3) Cyclicity (4) Seasonality b. Industry factors: (1) Capacity (2) New product entry prospects (3) Rivalry (4) Power of suppliers (5) Power of buyers (6) Threat of substitutes C. Operating environment 1. Driving forces a. Changes in the long-term industry growth rate b. Changes in who buys the product and how they use it c. Product innovation d. Technological change e. Marketing innovation f. Entry or exit of major firms g. Diffusion of technical know-how h. Increasing globalization of the industry I. Changes in cost and efficiency j. Emerging buyer preferences for differentiated products instead of a commodity product k. Regulatory influences and government policy changes l. Changing societal concerns, attitudes and lifestyles m. Reductions in uncertainty and business risks 2. Strengths and Weaknesses of Competitors 3. Customer Profiles 4. Role of suppliers V. Objectives Setting objectives converts the strategic vision and directional course into target outcomes and performance milestones. A. Long-term B. Short-term C. Financial 1. Faster revenue growth? 2. Faster earnings growth? 3. Higher dividends? 4. Wider profit margins? 5. Higher returns on invested capital? 6. Stronger bond and credit ratings? 7. Bigger cash flows? Page 3 Used by permission of the McGraw-Hill Companies. Copyright The McGraw-Hill Companies. All rights reserved.
  4. 4. 8. A rising stock price? 9. Recognition as a “blue chip” company? 10. A more diversified revenue base? 11. Stable earnings during recessionary periods? D. Strategic 1. A bigger market share? 2. A higher, more secure industry rank? 3. Higher product quality? 4. Lower costs relative to key competitors? 5. Broader or more attractive product line? 6. A stronger reputation with customers? 7. Superior customer service? 8. Recognition as a leader in technology and/or product innovation? 9. Increased ability to compete in international markets? 10. Expanded growth opportunities? 11. Total customer satisfaction? VI. Grand (Organizational or Business) Strategy Form: Matching Strategy to the Situation An articulation of the formal strategy based on the analysis preceding this step. The grand strategy identifies the overall goals of the organization. A. Concentration (increasing use of existing products in present markets) B. Market development (existing products in new markets) C. Product development (new products for present markets) D. Innovation E. Horizontal Integration F. Vertical Integration G. Concentric Diversification H. Conglomerate Diversification I. Turnaround J. Divestiture K. Liquidation L. Joint Ventures M. Strategic Alliances VII. Functional Strategies Although this may also be a part of the “Grand Strategy,” it is critical that the organization’s overall strategy be used a framework within which each division or business function sets its own strategic plan of action. A. Production/Operations 1. Manufacturing 2. Materials 3. Capital B. Marketing 1. Advertising Page 4 Used by permission of the McGraw-Hill Companies. Copyright The McGraw-Hill Companies. All rights reserved.
  5. 5. 2. Selling C. Finance and Accounting 1. Cash flow 2. Capital D. Research and Development E. Human Resource Management VIII. Implementing the Strategy Now that strategies have been defined for the organization as a whole and for the individual divisions or functions, a plan for implementing the strategy needs to be articulated. A. Build a capable corporation B. Policies and procedures to support the strategy C. Support systems D. Strategy-supporting reward systems E. Strategy-supporting corporate culture F. Strategic leadership IX. Control and Evaluation An implemented strategy must be monitored to determine the extent to which its objectives are achieved. A. Strategic controls 1. Monitor assumptions and predictions 2. Monitor implementation 3. Strategic surveillance of internal and external environments B. Operational controls 1. Budgets a. Profit and loss Templates: Cost, Volume and Profits Multiple-step Income Statement For a Corporation Work sheet and Financial Statements for a Manufacturing Corporation b. Capital budgets Templates: Master Budgets c. Cash flow Templates: Calculating the Cash Budget Ratios Cash Flows Working Paper: Direct Method Cash Flows Working Paper: Indirect Method 2. Schedules 3. Key success factors Form: Types of Key Success Factors Template: Competitive Strength Assessment Page 5 Used by permission of the McGraw-Hill Companies. Copyright The McGraw-Hill Companies. All rights reserved.

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